The Euro Banking Association released its crypto-technology report, which discussed a few recent bitcoin issues. The group is a practitioners’ body for banks and other service providers supporting a pan-European vision for payments, with membership including more than 180 institutions from across Europe and beyond.
The two reports on Digital Customer Service Interfaces (DCSI) and crypto-technologies were produced by the EBA’s Working Group on Electronic Alternative Payments. Its goal is to help financial institutions adapt to the changing payments landscape.
Bitcoin Issues Covered
Contrary to most financial authorities adopting a skeptical stance on bitcoin and other cryptocurrencies, the EBA report indicated that digital currencies have the ability to disrupt the payment and banking landscape and assist in the fight against cyber-criminals. In particular, the paper on crypto-technologies contained information on transaction banking and the four categories for payments and its real-world applications.
“Cryptotechnologies are a key subject for further study for transaction banking and payment professionals, especially against the background of evolving financial infrastructures,” mentioned Vincent Brennan, deputy chairman of the Euro Banking Association. “The information paper put together by the e-AP Working Group provides a hands-on introduction to this topic, which specifically focuses on the practical potential and related implications of cryptotechnologies for the transaction banking and payments area in the short to medium term.”
In addition, the paper outlined some scenarios that can take place in terms of establishing coordination between banks and the cryptocurrency industry, covering a few bitcoin issues that may come up.
The first one covers the creation of a separate crypto-economy while the second shows an approach where individual payment service providers (PSPs) strive to position themselves as developers of cryptotechnology applications. The third scenario covers a collaborative approach based on constant dialogue and possible partnerships in selective areas and the fourth also shows a more integrated collaborative approach based on partnerships between PSPs and the cryptotechnology community embracing a successful integration of processes.